Immunovant Inc.'s stock surged 31.76% during intraday trading on Wednesday, as investors reacted enthusiastically to positive preliminary clinical trial results for the company's autoimmune disease drug candidate, IMVT-1402.

The clinical-stage immunology company reported Week 16 data from its trial in difficult-to-treat rheumatoid arthritis, showing what it described as "clinically meaningful response rates." The data indicated that 72.7% of evaluated patients achieved at least a 20% improvement in tender and swollen joint counts, with 54.5% seeing at least a 50% improvement and 35.8% reaching a 70% improvement threshold.

Investors largely overlooked a wider-than-expected quarterly loss, focusing instead on the promising trial outcomes. The company also noted that its cash position provides sufficient runway to support the potential commercial launch of IMVT-1402 in Graves' disease, with further updates on the rheumatoid arthritis program and other clinical trials expected later in the year.